um equity multiplier 20. An increase in which of the following will increase the return on equity, all else constam 1. sales II. net income III. depreciation IV. total equity I only I and II only II and IV only II and III only 1, II, and III only Which one of the following statements is correct? A. B. Book values should always be given precedence over market values. Financial statements are frequently used as the basis for performance evaluations. Historical information provides no value to someone who is predicting future performance. Potential lenders place little value on financial statement information. Reviewing financial information over time has very limited value. D. E. 22. A firm has sales of $3,200, net income of $390, total assets of $4,500, and total equity of $2,750. Interest expense is $50. What is the common-size statement value of the interest expense? A. 0.89 percent B. 1.56 percent C. 3.69 percent 10.26 percent E. 14.55 percent Common-size interest = $50/$3,200 = 1.56 percent 73 Russell's Deli has cash of $136, accounts receivable of $95, accounts payable of $210. and inventory of $409. What is the value of the quick ratio? A. B. c. 0.31 0.53 0.71